Area business leaders gathered Tuesday to discuss the pending Health Insurance Tax and health care reform.
The Stop The HIT Coalition, a group of small businesses whose goal is to
repeal the Health Insurance Tax provision in the federal Patient
Protection and Affordable Care Act set to take effect in 2014, hosted a
forum where more than a dozen small business leaders gathered to talk
about the effects the tax would have on their business.
Stop The HIT believes insurers will pass the cost of the Health
Insurance Tax on to small businesses and others in the form of higher
premiums and cost-sharing – increasing costs by about $500 per family
plan per year.
“Small businesses in West Virginia and across America say that rising
health care costs and increased taxes are among their top concerns in
our current economy,” said Tom Susman, a managing member of TSG
Consulting and health care lobbyist who led Tuesday’s discussion.
“Our economy in West Virginia and across the country is a small business
economy. According to the SBA, small businesses account for over half
of America’s gross domestic product and more than half of our private
workforce.”
Susman said the tax would be levied on any business or individual who
purchased coverage in the fully insured marketplace, where an estimated
87 percent of all small businesses purchase their coverage.
Meanwhile, large corporations and others won’t have to pay the tax, Susman said.
Because many large companies are self-insured, they wouldn’t be affected by the tax to the same extent.
The tax is expected to generate about $100 billion over the first 10
years. For the average small business employee with a family health care
plan, the hit will amount to $500 annually in increased premium costs.
Members from the Independent Insurance Agents of West Virginia, West
Virginia Home Builders Association, Charleston Area Alliance, West
Virginia Auto Dealers Association, Sen. Joe Manchin’s Office, and West
Virginia EMS Coalition attended the forum.
Brenda Nichols Harper, vice president and general counsel of the West
Virginia Chamber of Commerce, said the Chamber advocates repeal of the
Health Insurance Tax.
“Come January, the many small businesses the West Virginia Chamber
represents will be starting to pay this tax. We believe that once this
tax is being paid, it’s going impact another tax we pay – the
unemployment comp tax,” she said.
“And the reason is because businesses are going to be forced to make
choices whether to employ people or pay this tax. The Chamber feels that
we have to stop the Health Insurance Tax in order to keep progress we
have made in West Virginia still going. The cost of insurance in the
private marketplace is going to go up.
“If we cannot afford to provide health insurance, the bottom line is, we will not be providing health insurance.”
She said that would be counter to the supposed purpose of the federal act – making health care accessible to more people.
Jane Cline, former state insurance commissioner and director of public
policy for Spilman Thomas and Battle, noted the effect the tax would
have on senior citizens.
“West Virginia is one of the most aged populations in the state. We’re
49th in per capita income. We need to start thinking about what this
does to West Virginia senior citizens,” Cline said.
“They talk about the subsidies through the exchange, but the monies to
pay for the subsidies are really coming in the form of these hidden
taxes that people are not aware of.”
Attendees were encouraged to write to local representatives requesting the repeal of the Health Insurance Tax.
Susman said Rep. Shelley Moore Capito, R-W.Va., has cosponsored a bill
to repeal the tax and Rep. David McKinley, R-W.Va., sponsored an earlier
version.
The Stop the HIT Coalition is a national group that has organized
meetings throughout the state to spread awareness and call for the
repeal of the tax.
It represents small business owners, their employees and the
self-employed who are interested in working to repeal the tax. For more
information, visit http://www.stopthehit.com/home.